Private Insurance Plans for Seniors

Question 1

Medicare supplement policies

Answer 1

“medigap”; fills in gaps of Medicare; NOT from social security dep, but by HMO and private insurers; can only be cancelled if you do not make premium payments, otherwise must be guaranteed renewable

Question 2

standard Medicare supplement plans

Answer 2

A must be offered in all plans; letters A-N; developed by NAIC

Question 3

long term care insurance

Answer 3

coverage for ind who are no longer able to live independently and require living assistance; covers 3 levels of care: skilled nursing, intermediate care, and custodial care
-home health care, adult day care, hospice care or respit care

Question 4

Long term care premium payments are ____ as a medical expense, to the extent that when added to all other unreimbursed medial expenses, the total exceeds____ of the taxpayer’s AGI

Answer 4

deductible; 7.5%

Question 5

However, premiums above limits given by IRS will not be considered a ___ ____, and therefore cannot be ___ ____.

Answer 5

medical expense; tax deductible